Human Resources and Human Resources Management

Human Resources (HR) and Human Resources Management (HRM)

Human Resources – HR

What do we really understand by the term HR?

Human Resources, or in short HR, is a group of people who make the workforce of a company or organization, business sector or an economy.

So, Human Resource is normally and typically the resource that resides in the knowledge, skills and motivation of people. Human resource is the least mobile of the factors of production, and, under the right conditions, it improves with age and experience, which no other resources can do. It is, therefore, regarded as the scarcest and most crucial productive resource that creates the largest and longest lasting advantage for an organization.

Human resource department is thus a department of an organization which deals and is in charge with finding, screening, recruiting and training job applicants, as well as administering employee-benefit programs.  People working in the Human Resource also have to deal with team building processes, where they should have knowledge of theories like Belbin Theory of Team Building as well as Jensen-Tuckman Team Building concept. Motivating staff and team members is also another function to be played by the individuals working in the Human Resource Department.

As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for quality employees. Research conducted by The Conference Board has found six key people-related activities that human resources completes to add value to a company:

1. Effectively managing and utilizing people.
2. Trying performance appraisal and compensation to competencies.
3. Developing competencies that enhance individual and organizational performance.
4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.
5. Applying new approaches to work process design, succession planning, career development and inter-organizational mobility.
6. Managing the implementation and integration of technology through improved staffing, training and communication with employees.

Therefore, a human resources department is a critical component of employee well-being in any business, no matter how small.

Human capital” is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include “manpower”, “talent”, “labor”, and simply “people”.

The professional discipline and business function that oversees an organization’s human resources is called human resource management (HRM, or simply HR).


Human Resources Management – HRM

Human resource management (HRM or simply HR) is the management of an organization‘s workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws.

So, Human Resource Management is the administrative discipline of hiring and developing employees so that they become more valuable to the organization.


Human Resource Management includes:

  • Conducting job analyses
  • Planning personnel needs and recruitment
  • Selecting the right people for the job
  • Orienting and training
  • Determining and managing wages and salaries
  • Providing benefits and incentives
  • Appraising performance
  • Resolving disputes
  • Communicating with personnel at all levels

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